Agricultural News

Kim Anderson Says Price Forecasts Not Great for Commodities Even Though the Weather Forecast Is

Fri, 19 Apr 2019 13:08:14 CDT

Commodity prices remain low and this week on SUNUP, Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson reports on the market outlook for wheat and other crops, helping producers determine where the best chances for profit lie in the current economic conditions.

According to Anderson’s report, wheat in Oklahoma can currently be forward contracted for harvest delivery at approximately $4.25. At present, the May Kansas City contract price is at $4.18. Compared to the trading range observed over the past four years ($3.70 to $6.00), that price is near the low-end of that range. Anderson says the long-term trend is down, while the short-term trend in wheat prices is down to maybe sideways as traders’ commitments are short by 54,000 contracts.

“A large short position like that, I think that’s good news,” Anderson said. “When they start getting out of those short positions maybe they’ll bring that price up a little bit.”

Compared to summer crops, the economics as it stands, do not look very good either unless producers can guarantee good production. Anderson says, given the current market, if producers can offset the low prices with increased yield they may be able to profit from a summer crop.

You can watch their visit tomorrow or Sunday on SUNUP- but you can hear Kim's comments on the wheat market and other commodities right now by clicking on the LISTEN BAR below.

Beyond Lyndall's weekly chat with Dr. Anderson- the SUNUP crew has a very full lineup for your viewing this weekend:

This week on SUNUP we get an update from Josh Lofton, on what is turning out to be one of Oklahoma’s best canola crops.